April 22, 2011 – 11:40 am
I had hoped to be able to make a big announcement this month – an address for my first store. Yep I’m going retail. Did you notice the word “hoped” in that first sentence?
Spent January and February finessing a business plan (this has been a back burner thought for quite some time so lot of the work was done). March I started in earnest scoping out the various neighborhoods that were likely candidates. Pulling demographic info, watching traffic patterns, scoping out prices on available commercial space. All the while continuing to working on designing and building adequate inventory to stock and meet sales goals. Narrowed my choices to 3 neighborhoods, started making appointments to see the spaces, and working out rough plans for layout, fixturing, etc.
It seemed so straight forward. I’d done my homework. I know my customer. I have proven product. I have the money. I have finished goods to sell. I have store design plans well thought out. I have almost everything in place. Except the space.
That’s right in this recovering economy I can’t find retail space. I’ve seen spaces without air conditioning. Spaces with bathrooms in the middle of the selling floor. Rising prices. I’ve been scooped several times now by national retailers who have discovered neighborhood shopping (I’m holding my tongue on that concept …grr). I learned of a Walmart planned for 3 doors down from one space I was considering. (Yes a Walmart in downtown Chicago – cool, hip art gallery hood Chicago) And the latest kicker was the space that wasn’t really available. It was just a store owner/broker who thought it cool to use my offer as a way to pressure her landlord to lower her rent. Offer withdrawn!
I don’t know if I should feel good or bad about what’s happening. On the plus side, it says my instincts on location and timing are spot on. It says retail is showing recovery. On the minus side, it’s national guys continuing to infiltrate neighborhood shopping streets and driving prices up and independents out. I’m not being scooped by boutique owners, it’s chains. So no announcements yet on a space. I’m sitting in a holding pattern waiting for something to open up. Trying to figure out how long to wait and what compromise I’m willing to make. Do a go to a less desirable location? Do I go for a larger store and/or higher price tag and the risk associated with that? No answers right now, just frustration. Will keep you posted!
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